GooglePC with GoogleOS

I’ve been saying for a couple of years that Google would do an office suite, operating system, and co-branded PC. Eric Schmidt told me to my face at CES last year that they would never do an Office Suite–which of course they did.

He also told me they would never do a OS or a PC. Well, Dell is bundling Google apps with their PCs now (as you can see below), and I predict that in 2007 Google will release an Operating System and a super discount PC. Think, a $300-400 PC all-in-on unit that is sold at cost in order to make money off of their services.

Think about being Dell or Gateway and being offered a) a free OS and b) 1-5% of the revenue from Adsense on the computer? How can you turn that down when it’s going to be double or triple your margin on a PC?!

The next upgrade cycle for Office is dead in the water thanks to the Google Office suite.The Google OS will come out in 2007, and in 2008/2009 the Windows upgrade cycle will be ankled.